Company Setup Services in Dubai

The UAE offers various company structures, each with its own advantages and disadvantages. The most common include:

• Mainland Company: Provides access to the entire UAE market but requires a local sponsor (unless operating in specific sectors).
• Free Zone Company: Offers 100% foreign ownership, tax exemptions, and specific benefits depending on the free zone, but operates within the free zone’s limitations.
• Offshore Company: Not physically present in the UAE and cannot trade within the UAE, primarily used for international activities.

• Choose your business activity and legal structure.
• Select a jurisdiction (mainland or free zone).
• Apply for a trade license and necessary permits.
• Register your company with the relevant authorities.
• Open a corporate bank account.
• Obtain visas for yourself and your employees (if required).

Not necessarily. As of June 2021, foreign investors can wholly own onshore companies in most sectors without a local sponsor. However, certain business activities and some free zones still require local sponsorship.

The timeframe can vary depending on the chosen jurisdiction, complexity of your business, and required approvals. Typically, it takes 2-4 weeks for a free zone company and 4-8 weeks for a mainland company.

Costs vary depending on several factors, including chosen jurisdiction, business activity, license fees, agent fees, and visa applications. Expect to pay AED 5,000-20,000+ for basic setup costs.

Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses provides the legislative basis for the introduction of a federal corporate tax in the UAE and is effective for financial years starting on or after 1 June 2023.

It provides for a tier system with three rates:

• All annual taxable profits below AED375,000 will be subject to a 0% rate.
• All annual taxable profits above AED375,000 will be subject to a 9% rate.
• Multinational Enterprises that fall under the scope of Pillar 2 of the OECD’s Base Erosion and Profit Shifting (BEPS) framework (consolidated global revenues in excess of AED3.15 billion) will be subject to different rates as per OECD rules.

Taxable profits are the accounting profits subject to certain adjustments.

The federal corporate tax system applies to all businesses and commercial activities operating within the seven emirates, with the exception of:

• Businesses operating in the extraction of natural resources. These will continue to be subject to the tax decrees issued by the respective Emirate
• Individuals earning income in their personal capacity (i.e. salary, investment income) as long as the income generating activity does not require a commercial license
• Businesses registered in strategic Free Trade Zones. They will remain exempt or partially exempt, provided they comply with all the regulatory requirements, and that do not conduct business with Mainland UAE.

The following income is generally exempt from federal corporate tax:

• Dividend income earned by UAE company from its qualifying shareholdings
• Capital gains
• Profits from group reorganisation
• Profits from intra-group transactions
• There will be no UAE withholding tax on domestic and cross-border payments.

The specific visa requirements depend on your nationality, business activity, and chosen jurisdiction. Typically, entrepreneurs need a business visa with an employment visa sponsored by their company.

Companies must comply with various regulations, including annual reporting, renewal of licenses, and visa renewals. It’s advisable to consult with a business setup consultant for specific compliance requirements.

Navigating regulations and obtaining approvals can be complex. Cultural differences and language barriers may also present challenges. Partnering with a company formation specialist can help overcome these hurdles.

Yes, Cyberfox Consultancy can assist with opening a company bank account in Dubai. We have connections with various banks and can guide you through the process to ensure a smooth experience.

Documentation requirements will vary depending on the type of entity that a client wishes to establish and the proposed ownership structure. Upon engagement, Cyberfox Consultancy will provide a detailed list of the requirements in order to simplify the process.